Zero-based budgeting for Central schemes

The finance ministry has asked the Planning Commission to undertake zero-based budgeting of all Central sponsored schemes (CSS).

Last year, the plan body had undertaken a rationalisation exercise for Centre-sponsored schemes. This year, it has been asked to do the same for schemes being run by the Central government.

Last year, the Planning commission had reduced the number of CSS from 320 to about 190 as part of the zero-based budgeting exercise.

A few years back, a similar exercise had been undertaken for Central schemes, as a result of which, their number was reduced from around 3,000 to 900. Further pruning is to be undertaken for these schemes.

The finance ministry had included pruning of schemes with low allocations, which are ineffective, as part of it's list of things to do in its draft outcome Budget.

"The exercise is aimed at better utilisation of resources. We do not know what impact the schemes have had at ground level," said a finance ministry official.

Officials said the idea of starting with the review from the current fiscal was aimed at encouraging ministries and departments to undertake evaluation of the schemes at the time the eleventh plan was formulated.